Department of Business Administration University of Lucknow Submitted to: Dr. J.

K Sharma Presented by: Mithun Garg(Marketing)

The history of Indian television dates back to the launch of doordarshan, Indias national TV network in 1959. Channel Doordarshan was owned and operated by government of India. In those era every home which had a TV set used to have its own antenna to capture the signals. The 9th Asian games which were held in 1982 in the countrys capital New Delhi heralded the mark of color TV broadcasting in India.

Doordarshan (DD-Direct +) of Prasar Bharati. Dish TV of ZEE group. Tata Sky joined venture between Tata and Rupert Murdochs Sky TV. Sun direct of Sun Network. BIG TV of Reliance Anil Dhirubhai Ambani group. Airtel digital TV of Bharati telemedia. Videocon d2h of Videocon industries.

The structure of the DTH industry in India can be categorized as an Oligopoly. An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). Key characteristics of Oligopoly are following : Few larger supplier dominates the market Interdependence between firms Each firm produces branded products Significant entry barriers into the market in the long run which allows firms to make supernormal profits. Each oligopolist is aware of the actions of the others.

The revenue of Indian Direct-To-Home (DTH) market is expected to be more than $ 5 billion by 2020, as mandatory cable TV digitization would help the DTH players expand their subscriber base. The active DTH subscriber base is estimated to grow from 32.4 million in 2012 to 63.8 million by 2017 and 76.6 million by 2020.

Threat from substitutes:

Cable TV operators Internet protocol television(IPTV)/Online TV Terrestrial transmission

Bargaining power of suppliers:

The bargaining power of India DTH operators with CPE(customer premise equipment) suppliers have been steadily increasing.

Threat of new entrants:

Initial setup cost is high which again acts as a barrier to entry. Their already exist well settled DTH service providers.

Bargaining power of buyers:

Due to intensified competition installation prices are declining, subscribers now have a wide range of options. Customers will continue to have a high bargaining power until DTH platforms try to differentiate them as superior players with better content and clarity.
With seven operational players the inter firm rivalry Is quite high. The competition from state owned DD-Direct to private players is negligible as the number of channels offered by DD-Direct is very limited.

Rivalry among existing firms:

Strength:

Increased high definition services Declining content acquisition cost Rural penetration

Weakness:

Capital intensive industry Skilled labor Satellite technology Signals Viewer migration

Opportunity:

Increasing number of TV households Mandatory cable TV digitization in some cities Increasing disposable income Development of technology may turn DTH services obsolete Competition from other TV distribution players Slowdown in economic growth Set top box shortage Climate Radio Cinema halls New entrants

Threat:

Rank Total Customers

Total customer Market Share %

Dish TV (28%) Tata Sky (19%) Airtel (18%)

Active Active % of Active Growth Customers Customer Customers Rate Market Share %
Dish (6.9mn) TV Dish (23%) TV Airtel DTH Airtel DTH (72.5%) Videocon D2H

Average Revenue Per User

Tata Sky Airtel DTH

1 2

Dish TV (13.4mn) Tata Sky (9.2mn) Airtel DTH (8.0mn) Sun Direct (7.6mn) Videocon D2H (6.1mn) Reliance Digital TV (4.4mn)

Airtel DTH Airtel DTH Videocon (5.8mn) (19%) D2H (69%)

DTH Tata Sky Tata (5.7mn) (19%)

Sky Sun Direct Sun Direct (64.5%) Sky Dish TV

Videocon D2H Dish TV Reliance Digital TV Sun Direct

4 5

Sun Direct Sun Direct Sun Direct Tata (16%) (4.9mn) (18%) (62%) Videocon D2H (13%) Reliance Digital TV (9%) Videocon Videocon D2H (4.2mn) D2H (14%)

Reliance Tata Sky Digital TV (52%) TV Reliance Digital TV

Reliance Reliance Dish Digital TV Digital TV (51.5%) (2.3mn) (8%)

Content Regulation Pricing and consumerism Advertising Strategy Technology

The DTH market in India is growing at a fast pace and the number of active subscribers in the country is also increasing. The Government is providing ample support to the DTH sector in the country, and this has encouraged newer players to enter the market. However, with the stiff level of competition from the existing multi-channel cable network and upcoming technologies including IPTV, players need to be consistently innovative.